Byju’s, the world’s most valuable edutech startup, has raised $300 million from its existing investors, including Naspers, Tiger Global, and General Atlantic, at a valuation of $16.5 billion. The funding comes at a time when the company is facing a leadership crisis, as its founder and CEO Byju Raveendran is reportedly asked to step down by the investors over allegations of mismanagement and misconduct.
Sources say that Raveendran has been accused of creating a hostile work environment, indulging in unethical practices, and falsifying financial and operational data to the board and the public. Several current and former employees have also filed complaints against him and the company for harassment, discrimination, and wrongful termination.
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The investors, who collectively own more than 50% of Byju’s, have reportedly demanded Raveendran to resign and appoint a professional CEO to run the company. They have also hired an independent auditor to probe the allegations and review the company’s books.
However, despite the turmoil, Byju’s has managed to secure a new round of funding that will help the company expand its product portfolio, enter new markets, and acquire more users.
Byju’s CEO Raveendran
Byju’s, which was founded in 2011, offers online courses and learning programs for students from kindergarten to 12th grade, as well as test preparation for competitive exams. The company claims to have over 100 million registered users and 6.5 million paid subscribers. It also owns several other edutech platforms, such as WhiteHat Jr, Osmo, Epic, and Aakash Educational Services.
Byju’s has been one of the biggest beneficiaries of the Covid-19 pandemic, which boosted the demand for online education in India and abroad. The company reported a revenue of ₹2,800 crore in the fiscal year 2020, up from ₹1,430 crore in the previous year. It also turned profitable at the consolidated level, with a net profit of ₹20 crore.
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However, the company has also faced several challenges and controversies, such as regulatory hurdles, legal disputes, customer complaints, and employee unrest. The latest crisis involving its CEO could potentially damage its reputation and growth prospects, unless it is resolved swiftly and amicably.
Last Updated on 10 months
